Booz Allen Rises Most in 10 Months on Profit ReportNick Taborek
Booz Allen Hamilton Holding Corp. rose the most in 10 months after the U.S. government contractor reported profit in the fourth quarter that beat analysts’ estimates.
The company, which provides engineering and consulting services, rose 8.3 percent, the most since July, to close at $18.38 in New York.
The company today reported fourth-quarter adjusted profit of 40 cents a share, higher than analysts’ average estimate of 37 cents. Booz Allen forecast per-share profit in the year ending March 31, 2014, of $1.55 to $1.65. The average estimate of nine analysts surveyed by Bloomberg is $1.51. Revenue increased less than 1 percent in the fourth quarter.
“We are proud to have maintained revenue close to last year’s levels and to have increased our adjusted earnings, demonstrating demand for our services from clients and our ability to manage our business well despite a challenging market environment,” Ralph Shrader, Booz Allen’s chairman and chief executive officer, said in a statement.
Booz Allen, the 13th-largest federal contractor according to a Bloomberg Government ranking, is a top cybersecurity vendor at the Pentagon.
Contractors now confront added pressure from automatic federal budget cuts known as sequestration. The reductions began March 1 and will slice budgets by as much as $1.2 trillion over nine years if President Barack Obama and U.S. lawmakers fail to agree on a broader deficit-reduction strategy.